1e Pension Plan Survey 2025

Alongside growing affiliations (+12%) and larger average company sizes (+16%), MEPFs are also seeing shifts in member behaviour. While contributions remain strong with employers financing an average of CHF 15.6k per member, 65% above market average, buy-ins declined by 9% to CHF 22.2k. The reasons are likely multifaceted: rising living costs, political uncertainty (e.g. potential lump sum taxation), and a lack of awareness around buy-in opportunities may all be contributing. At the same time, MEPFs have noticeably revised their future AuM growth expectations downward to 10.4% p.a., signalling a more cautious outlook going forward.

Providers are intensifying efforts to enhance the functionality of online portals and achieve full process automation. Currently, 11 out of 14 providers offer an online portal, reflecting a significant transformation since the survey's first edition in 2019, when online presence was merely a topic of discussion. Our survey also reveals that the journey toward AI adoption has begun, with several exciting initiatives already in progress. Providers are leveraging AI to boost operational efficiency and incorporating chatbots into their employee portals.

Several providers have effectively reduced administrative costs, although some reported a slight increase in costs per member due to organisational changes compared to the previous year. MEPF providers successfully decreased the average administrative cost per member, driven in part by the significant growth in insured members across certain providers. Furthermore, providers are making substantial investments in digitalising operations to enhance process efficiency, ultimately supporting greater overall efficiency and further lowering costs.

Equities and bonds remain predominant in asset allocation for 1e pension plans, while real estate plays a less significant role. Meanwhile, cryptocurrencies are emerging within 2nd and 3rd pillar discussions. Although there's a growing interest in crypto, its volatility and regulatory uncertainty suggest it's not well-suited for inclusion in the 2nd pillar, despite increasing popularity.